John Hand

Richard Sansing1
Chengxi Yin1
1Richard Sansing
1Chengxi Yin
Learn More
We find that employee stock option deductions lead to large aggregate tax savings for Nasdaq 100 and S&P 100 firms and also affect corporate marginal tax rates. For Nasdaq firms, including the effect of options reduces the estimated median marginal tax rate from 31% to 5%. For S&P firms, in contrast, option deductions do not affect marginal tax rates to a(More)
Portfolios often trade at substantial discounts relative to the sum of their components (e.g., closed-end funds, conglomerates). We propose a simple explanation for this phenomenon, drawing from prior research that investor disagreement coupled with short-sale constraints can lead to overvaluation. Specifically, we argue that while investors may strongly(More)
  • 1